Bank Pertanian Malaysia Act 1969 (Act 9)

009e.
fm Page 1 Monday, March 27, 2006 11:18 AM
http://perjanjian.org
LAWS OF MALAYSIA
REPRINT
Act 9
BANK PERTANIAN MALAYSIA

ACT 1969
Incorporating all amendments up to 1 January 2006
PUBLISHED BY
THE COMMISSIONER OF LAW REVISION , MALAYSIA
UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968
IN COLLABORATION WITH MALAYAN LAW JOURNAL SDN BHD AND
PERCETAKAN NASIONAL MALAYSIA BHD
2006
Adam Haida & Co

http://peguam.org
009e.fm Page 2 Monday, March 27, 2006 11:18 AM
BANK PERTANIAN MALAYSIA ACT 1969
Date of Royal Assent … … … … … 22 April 1969
Date of publication in the Gazette … … … 1 May 1969
PREVIOUS REPRINTS
First Reprint … … … … … 1992
Second Reprint … … … … 1999
PREPARED FOR PUBLICATION BY

MALAYAN LAW JOURNAL SDN BHD
AND PRINTED BY
PERCETAKAN NASIONAL MALAYSIA BERHAD
KUALA LUMPUR BRANCH
2006
Adam Haida & Co

http://peguam.org
Bank Pertanian Malaysia 3
LAWS OF MALAYSIA
Act 9
ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY
Section
1. Short title
2. Application
3. Interpretation
PART II
ESTABLISHMENT, CAPITAL AND
ADMINISTRATION OF THE BANK
4. Establishment of the Bank
5. Office of the Bank
6. Objects
7. Capital
8. Board of Directors
9. Terms of appointment of Chairman and directors
10. Appointment and duties of General Manager
10A. Appointment of committees and subcommittees
10B. Discipline of officers and employees
10C. Surcharge
10D. Establishment of Disciplinary Appeal Board
10E. Termination in the public interest
11. Direction by the Minister
Adam Haida & Co

http://peguam.org
4 Laws of Malaysia ACT 9

PART III
MEETINGS OF THE BOARD
Section
12. Meetings of the Board
13. Disclosure of director’s interest in contract
PART IV
POWERS, FUNCTIONS AND
THE BUSINESS OF THE BANK
14. Power to borrow
15. Authorized business of the Bank
16. Business which the Bank may not transact
17. Loans and lending
18. Bank may sell or dispose of crops and produce
19. Examination of application of loan, moneys and credit
20. Sums improperly applied
21. Cancellation or modification of approval of guarantee
22. Refusal to give sums not yet advanced
PART V
GENERAL RESERVE FUND OF THE BANK
23. Maintenance of General Reserve Fund
24. Exhibition of audited balance sheet
PART VI
ACCOUNTS AND AUDIT
25. Audit
26. Preparation and publication of annual report and balance sheet
PART VII
OFFICERS AND EMPLOYEES OF THE BANK
27. Officers and employees
28. Borrowing from Bank by staff
29. Restrictions on payments of loans and advances to staff
Adam Haida & Co

http://peguam.org

Section
30. Provident fund
31. Officers on secondment or transfer from Federal or State service
PART VIII
PENALTIES AND PROSECUTION
32. Penalties
33. Fiat of Public Prosecutor
34. Jurisdiction
PART IX
GENERAL
35. Penal Code
36. Preservation of secrecy
37. Power to appoint attorney
38. Power to make regulations
38A. Power to make disciplinary regulations
Adam Haida & Co

http://peguam.org
Adam Haida & Co

http://peguam.org
LAWS OF MALAYSIA
Act 9
An Act to incorporate the Bank Pertanian Malaysia to organize,

provide, supervise and co-ordinate the grant of credit for
agricultural purposes in Malaysia.
[Throughout Malaysia—1 August 1969, P.U.(B)187/1969]
BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan

Agong with the advice and consent of the Dewan Negara and
Dewan Rakyat in Parliament assembled, and by the authority of
the same, as follows:
P ART I
PRELIMINARY
Short title
1. This Act may be cited as the Bank Pertanian Malaysia Act

1969.
Application
2. This Act shall apply throughout Malaysia.
Interpretation
3. In this Act unless the context otherwise requires—

“agriculture” includes any activity in agriculture, horticultural
or forestry production, fisheries, and the use of land for any
purpose of husbandry;
“agricultural production” means any agricultural or
horticultural produce, processed or otherwise, including farm and
farmyard animals whether alive or slaughtered, the flesh or hide
of such animals, dairy produce, poultry and eggs, fish and fishery
products;
Adam Haida & Co

http://peguam.org
“Bank” means Bank Pertanian Malaysia;

“Board” means the Board of Directors of Bank Pertanian
Malaysia;
“Chairman” means the Chairman of Bank Pertanian Malaysia;
“director” means a director appointed under section 8 and
includes the Chairman;
“General Manager” means the General Manager of Bank
Pertanian Malaysia;
“giro service” means a service for the transfer of payment
between accounts on the instruction of depositor or depositors;
“husbandry” includes the keeping or breeding of livestock,
poultry or bees and the growing of fruit, vegetables and the like;
“marketing” means the sale, export, processing, purchase,
storage, collection, assembling and the transport for purposes of
purchase and sale of any agricultural produce and includes
advertising and financing of operations for such agricultural
produce for the purpose of trade;
“Minister” means the Minister charged with the responsibility
of Bank Pertanian Malaysia.
PART II
ESTABLISHMENT, CAPITAL AND
ADMINISTRATION OF THE BANK
Establishment of the Bank
4. A body corporate by the name of “Bank Pertanian Malaysia”

with perpetual succession and a common seal, and power to
acquire and hold movable or immovable property and to dispose
thereof or otherwise deal therewith such property, and which may
sue and be sued in its own name is established.
Office of the Bank
5. The Bank shall have its head office in Kuala Lumpur, and
may open branches and appoint agents and correspondents within
Malaysia.
Adam Haida & Co

http://peguam.org
Objects
6. The objects of the Bank shall be—

(a) to promote sound agricultural development in Malaysia
or any part thereof;
(b) to co-ordinate and supervise the grant of credit from
public funds for agricultural purposes by the various
persons or bodies of persons whether incorporate or
unincorporate;
(c) to provide loans, advances and other credit facilities
for the development of agriculture including production
and marketing;
(d) to mobilize savings with particular regard to the
agricultural sector and in furtherance of this object to
accept savings and time deposits.
Capital
7. (1) The authorized capital of the Bank shall be fifty million

ringgit of which ten million ringgit shall be subscribed and paid
up by the Government on the establishment of the Bank.
(2) The paid up portion of the authorized capital may be

increased by such amount and in such a manner as the Board shall
decide from time to time with the approval of the Minister and the
concurrence of the Minister of Finance:
Provided that the payment of such increase in capital may be

made by way of such transfers as the Board may with the
approval of the Minister and the concurrence of the Minister of
Finance, from time to time decide, including transfers from the
General Reserve Fund of the Bank and other sources as the
Minister on the recommendation of the Board may approve.
Board of Directors
8. (1) There shall be a Board of Directors constituted under

subsection (2) which shall be responsible for carrying out the
functions of the Bank and the general administration of the affairs
and business of the Bank.
Adam Haida & Co

http://peguam.org
(2) The Board of Directors shall consist of a Chairman

appointed by the Yang di-Pertuan Agong and not less than six and
not more than eight directors to be appointed by the Minister:
Provided that at least three of the directors appointed by

the Minister shall be persons not holding any public office.
(3) The directors appointed under subsection (2) shall be

persons of standing, experience and capacity in matters relating
to agriculture and finance, but as directors of the Bank shall not
act as delegates on the Board from any agricultural, commercial,
financial, industrial or other interests with which they may be
connected.
(4) Where a director appointed is a public officer—
(a) the prohibition mentioned in subsection (3) shall not

apply; and
(b) there shall be appointed an alternate director in addition

thereto.
Terms of appointment of Chairman and directors
9. (1) The Chairman shall be appointed for a term not

exceeding five years and shall be eligible for reappointment.
(2) Subject to subsection (1), a director shall hold office for a

term not exceeding three years and shall be eligible for
reappointment.
(3) The Chairman and the directors shall be paid by the Bank
such remuneration and allowances as may be determined by the
Minister.
(4) During the temporary incapacity from illness or during the

temporary absence from Malaysia of the Chairman or any
director, the Yang di-Pertuan Agong or the Minister, (by whom
that person was appointed pursuant to subsection 8(2)) may
appoint another person to be a temporary Chairman or director.
(5) The Yang di-Pertuan Agong or the Minister, may terminate

the appointment of the Chairman or any director if he—
Adam Haida & Co

http://peguam.org
(a) is guilty of serious misconduct in relation to his office;

(b) is absent, except on leave, from all meetings of the
Board held during two consecutive months or during
any three months in any period of twelve months;
(c) fails to comply with his obligations under subsection
13(1).
(6) No person shall be appointed or shall remain as Chairman

or director of the Bank if—
(a) he becomes of unsound mind or otherwise incapable
of carrying out his duties;
(b) he becomes bankrupt or suspends payment or
compounds with his creditors;
(c) he is convicted by a court of law in Malaysia of an
offence and sentenced to imprisonment for a term of
not less than two years, or of any offence involving
fraud or dishonesty and has not received a free pardon;
(d) he is a director or salaried official of any bank licensed
under the provisions of the Banking and Financial
Institutions Act 1989 [Act 372].
Appointment and duties of General Manager
10. (1) The Board shall appoint a General Manager who shall be
responsible for the day to day administration and management of
the affairs of the Bank and may, subject as is expressly stated in
this Act, give decisions and exercise all powers and do all acts
which may be exercised or done by the Bank.
(2) The General Manager shall be answerable to the Board for

his acts and decisions.
(3) The General Manager shall devote the whole of his

professional time to the service of the Bank:
Provided that he may if so appointed with the approval of the

Minister—
(a) act as a member of any committee or commission

appointed by Government to enquire into any matter
Adam Haida & Co

http://peguam.org
affecting agriculture and agricultural production,

finance and credit and related matters in Malaysia;
(b) become a director, governor or member of the board
by whatsoever name called of any international bank
or agricultural institution of international character;
(c) become a director of any corporation in Malaysia in
which the Bank may participate; or
(d) become a director or member of the board of
management by whatsoever name called of any
statutory authority.
Appointment of committees and subcommittees
10A. (1) The Board may appoint committees for any purpose
arising out of or connected with any of its powers, duties and
functions under this Act; any committee so appointed shall
include not less than one member of the Board, and there may be
appointed to such committee such other persons as the Board may
think fit.
(2) Any committee appointed under subsection (1) may

appoint one or more subcommittees; any subcommittee so
appointed shall include not less than one member of the
committee appointing it, and there may be appointed to such
subcommittee such other persons as the committee appointing it
may think fit.
(3) Any committee or subcommittee so appointed shall

conform to any instructions from time to time given to it by the
Board, and the Board may at any time discontinue or alter the
constitution of any committee or subcommittee so appointed.
(4) There may be paid to members of any committee or

subcommittee such remuneration or allowances as the Board may
from time to time determine with the approval of the Minister.
(5) The Board, a committee or subcommittee may, respectively,

invite any person who, in its opinion, is possessed of special
knowledge of advantage to it, to attend any meeting of the Board,
committee or subcommittee and the person so invited shall not be
entitled to vote at any such meeting.
Adam Haida & Co

http://peguam.org
(6) Any minutes of any meeting of any committee or

subcommittee shall, if duly signed, be receivable in evidence in
all legal proceedings without further proof and every such
meeting shall be deemed to have been duly convened and held
and all members of the committee or subcommittee present at
such meeting shall be deemed to have been duly qualified to act.
Discipline of officers and employees
10B. (1) There shall be a Disciplinary Committee of the Bank

which shall consist of two members to be elected by and from the
members of the Board, one of whom shall be elected chairman,
and the General Manager appointed under subsection 10(1).
(2) The disciplinary authority in respect of every officer and

employee of the Bank other than the General Manager shall be the
Disciplinary Committee of the Bank established under subsection
(1).
(3) The disciplinary authority in respect of the General

Manager shall be the Disciplinary Committee which shall consist
of the Secretary General of the Ministry of Agriculture and Agro-
Based Industry as chairman and two members to be elected by
and from the members of the Board.
(4) The General Manager shall not be a member of the

Disciplinary Committee in any proceedings before it in which he
is the complainant; his place shall be taken by a member to be
elected by and from the members of the Board.
(5) In the exercise of its disciplinary functions, the

Disciplinary Committee shall have the power to impose such
disciplinary punishment as may be provided for under any
regulations that may be made under section 38A.
(6) The Disciplinary Committee may, subject to subsection

(7), delegate any of its disciplinary functions, powers or duties to
any committee of officers or employees of the Bank, in respect of
any particular officer or employee of the Bank or in respect of
any class or category of officers or employees of the Bank, and
the committee delegated with such functions, powers or duties
shall carry out, exercise or discharge them under the direction and
control of the Disciplinary Committee which shall have the power
to review, rescind or vary any decision or finding of such
committee.
Adam Haida & Co

http://peguam.org
(7) No delegation shall be made under subsection (6) so as to

enable an officer or employee of the Bank to be a member of a
committee which may exercise any disciplinary authority over an
officer or employee who is superior to him in rank.
(8) A decision of the Disciplinary Committee established

under subsection (1) shall be appealable to the Disciplinary
Appeal Board established under section 10D.
(9) A decision of the Disciplinary Committee established

under subsection (3) shall be appealable to the Minister.
(10) The Disciplinary Appeal Board or the Minister, may confirm,

reverse or vary the decision of the Disciplinary Committee.
(11) A decision of the Disciplinary Appeal Board or the

Minister under subsection (10) shall be final and conclusive.
Surcharge
10C. (1) If it appears to the Disciplinary Committee that any

person who is or was in the employment of the Bank—
(a) has failed to collect any moneys owing to the Bank for
the collection of which he is responsible;
(b) is or was responsible for any payment of Bank moneys

which ought not to have been made or for any payment
of moneys which is not duly vouched;
(c) is or was responsible, directly or indirectly, for any

deficiency in, or for the destruction of, any moneys,
stamps, securities, stores or other property of the
Bank;
(d) being or having been an accounting officer, fails or

has failed to keep proper accounts or records;
(e) has failed to make any payment, or is or was

responsible for any delay in the payment, of Bank
moneys to any person to whom such payment is due
under any contract, agreement or arrangement entered
into between that person and the Bank,
Adam Haida & Co

http://peguam.org
the Disciplinary Committee shall serve on him a written notice

calling on him to show cause why he should not be surcharged,
and if a satisfactory explanation is not, within fourteen days from
the date of service of the notice as aforesaid, furnished to the
Disciplinary Committee with regard to the failure to collect,
payment which ought not to have been made, payment not duly
vouched, deficiency or destruction, or failure to keep proper
accounts or records, or failure to make payment, or delay in
making payment, the Disciplinary Committee may surcharge
against the said person a sum not exceeding the amount of any
such amount not collected, such payment, deficiency, or loss or
the value of the property destroyed; and with regard to the failure
to keep proper accounts or records, or the failure to make
payment, or the delay in making payment, the Disciplinary
Committee may surcharge against the said person such sum as the
Committee may think fit.
(2) The chairman shall cause the General Manager to be

notified of any surcharge made under subsection (1) and the
General Manager shall thereupon notify the person surcharged.
(3) The Disciplinary Committee may at any time withdraw

any surcharge in respect of which a satisfactory explanation has
been received or if it otherwise appears that no surcharge should
have been made, and the chairman shall at once cause the General
Manager to be notified of such withdrawal.
(4) The amount of any surcharge made under subsection (1)

and not withdrawn under subsection (3) shall be a debt due to the
Bank from the person against whom the surcharge is made and
may be sued for and recovered in any court at the suit of the Bank
and may also be recovered by deduction—
(a) from the salary of the person surcharged if the
Disciplinary Committee so directs; or
(b) from the pension of the person surcharged if the
Disciplinary Committee so directs,
by equal monthly instalments not exceeding one-fourth of the
total monthly salary or pension, of the person.
Establishment of Disciplinary Appeal Board
10D. (1) There shall be a Disciplinary Appeal Board of the Bank

which shall consist of the following members:
Adam Haida & Co

http://peguam.org
(a) the Chairman, who shall be the chairman of the

Disciplinary Appeal Board and shall have a casting
vote; and
(b) three members of the Board, not being members of the
Disciplinary Committee whose decision is the subject
matter of the appeal, to be appointed by the chairman
of the Disciplinary Appeal Board with the approval of
the Board for the purpose of the appeal.
(2) When the Disciplinary Appeal Board considers an appeal

made under section 10B , a member of the Disciplinary Committee
against whose decision the appeal is made who is also a member
of the Board shall not be present or in any way participate in any
proceedings relating to the appeal.
Termination in the public interest
10E. (1) Where the Board finds or where representations are

made to the Board that it is desirable that the service of an officer
or employee be terminated in the public interest, the Board may
call for a full report from the superior officer of the officer or
employee against whom the representations are made which shall
contain particulars relating to the work and conduct of the officer
or employee.
(2) If, after considering the report received under subsection

(1), the Board is satisfied that, having regard to the conditions of
service, the usefulness of the officer or employee, the work and
conduct of the officer or employee and all the other
circumstances of the case, it is desirable in the public interest so
to do, the Board may terminate the service of the officer or
employee with effect from such date as the Board shall specify.
(3) It shall be lawful for the appropriate Disciplinary

Committee to recommend to the Board that the service of an
officer or employee be terminated in the public interest
notwithstanding that disciplinary proceedings have not been
carried out under this Act and the Board may so terminate the
service of the officer or employee.
(4) Notwithstanding anything in this Act and any other law to

the contrary, in terminating the service of an officer or employee
in the public interest under this section, the officer or employee
may not be given any opportunity of being heard and an officer or
Adam Haida & Co

http://peguam.org
employee whose service has been terminated in the public interest

under this section shall not be regarded as having dismissed,
regardless of whether the termination of service of the officer or
employee involved an element of punishment or was connected
with conduct in relation to his office which the Board regards as
unsatisfactory or blameworthy.
Direction by the Minister
11. The Minister may issue directives not inconsistent with the
provisions of this Act to the Board regarding the policy to be
pursued by the Bank and any such directive shall become binding
on the Board which shall forthwith take all steps necessary or
expedient to give effect thereto.
PART III
MEETINGS OF THE BOARD
Meetings of the Board
12. (1) At every meeting of the Board the Chairman, or in the

absence of the Chairman, a director elected by the directors
present at the meeting, shall preside.
(2) The Chairman shall summon Board meetings as often as

required but not less frequently than once a month.
(3) Three directors may requisition a meeting of the Board.
(4) Four members of the Board present at a meeting of the

Board shall form a quorum.
(5) All decisions at a meeting of the Board shall be adopted by

a simple majority of votes of directors present and voting:
Provided that if upon any question the votes are equally

divided, the Chairman or the person presiding shall have a casting
vote.
Disclosure of director’s interest in contract
13. (1) A director who is directly or indirectly interested in a

contract made, or proposed to be made, by the Bank shall disclose
Adam Haida & Co

http://peguam.org
the nature of his interest at the first meeting of the Board at which
he is present after the relevant facts have come to his knowledge.
(2) A disclosure under subsection (1) shall be recorded in the

minutes of the Board and, after disclosure, the director—
(a) shall not take part in any deliberation or decision of
the Board with respect to that contract; and
(b) shall be discharged for the purpose of constituting a
quorum of the Board for any such deliberation or
decision.
(3) No act or proceeding of the Board shall be questioned on

the ground of the contravention by a member of the Board of this
section.
P ART IV
POWERS, FUNCTIONS AND
THE BUSINESS OF THE BANK
Power to borrow
14. For the purpose of carrying out its functions under this Act
the Bank may, with the prior written approval of the Minister of
Finance, borrow from any Federal or State monetary, co-
operative, development, marketing or like institution, board,
authority or other organization or international bank or agricultural
credit institution of an international character such sums as may
be required by the Bank and on such terms and subject to such
conditions as may be agreed between the Bank and the lender and
approved by the Minister of Finance.
Authorized business of the Bank
15. Notwithstanding any written law relating to borrowing

business the Bank may—
(a) borrow, raise or take up money, lend or advance
money with or without security; purchase, sell,
discount and rediscount inland bills of exchange and
promissory notes bearing two or more good signatures
drawn or issued for the purpose of financing
agricultural operations or the marketing of crops;
Adam Haida & Co

http://peguam.org
(b) in respect of agricultural operations and marketing of

agricultural productions, grant and issue letters of
credit;
(c) acquire, hold, issue on commission, underwrite and
deal with stock bonds, funds, obligations, securities
and investment of all kinds;
(d) receive money and valuables on deposit for safe
custody;
(e) transact all manner of agency business;
(f) acquire and undertake the whole or any part of the
business, property and liabilities of any person or
company carrying on any business which the Bank is
authorized to carry on, or possessed of property
suitable for the purposes of the Bank;
(g) issue on commission, subscribe for, take, acquire and
hold, sell, exchange, and deal in shares, stocks, bonds,
obligations or securities of the Federal or any State
Government or such other public institution as the
Minister on the recommendation of the Board may
approve;
(h) carry on the business of godown keepers or
warehousemen and to hire, purchase, erect or
otherwise acquire warehouses or godowns for any of
the purposes of the Bank;
(i) acquire, improve, manage, work, develop, exercise all
rights in respect of, lease, mortgage, sell, dispose of,
turn to account, and otherwise deal with property,
movable and immovable irrespective of the title
thereof, and produce of all kinds and in particular
agricultural produce;
(j) enter into any arrangements with the Federal or any
State Government or authorities, municipal, local or
otherwise that may seem conducive to any or all of the
objects of the Bank, and to obtain from any such
Government or authority any rights, privileges and
concessions which the Bank may think it desirable to
obtain and to carry out, exercise, and comply with any
such arrangements, rights, privileges and concessions;
(k) accept savings and time deposits;
Adam Haida & Co

http://peguam.org
(l) make advances for the purpose of assisting the

growing or marketing or development of primary
produce to individuals, co-operatives, authorities and
such other organizations as approved by the Board
being organizations engaged in farming, agricultural,
horticultural, husbandry, pastoral, grazing, or fishing
operations;
(m) purchase, sell, and discount Treasury bills of the
Government or of the Government of any State
authorized to issue Treasury bills;
(n) with the approval of the Minister, acquire, hold and
sell shares of any corporation set up with the approval
of or under the authority of the Government or of the
Government of any State, for the purpose of
promoting the development of agriculture in Malaysia
or any part thereof;
(o) maintain accounts with other banks within Malaysia;
(p) act as correspondent, or agent for any international
bank or agricultural credit institution of an
international character;
(q) operate giro services;
(r) do generally all such things as may be necessary for
the purpose of carrying out the functions of the Bank.
Business which the Bank may not transact
16. (1) The Bank may not—

(a) except as provided in paragraph 15(n) purchase the
shares of any corporation, including the shares of any
banking company or subsidiary company thereto;
(b) accept for discount or as security for an advance made
by the Bank, bills or notes signed by members of the
Board or by the Bank’s officers or employees except
in relation to any loan made by the Bank under section
28.
(2) Nothing in this Act shall authorize the Bank to—

(a) accept any money on deposit or loan which is
Adam Haida & Co

http://peguam.org
repayable on demand by cheque, draft, order or any

other instrument drawn by the depositor on the Bank;
(b) deal in—
(i) gold; or
(ii) foreign currency.
Loans and lending
17. In the exercise of its powers and functions the Bank may
make loans and advances on such terms and conditions and for
such purpose as the Bank may impose.
Bank may sell or dispose of crops and produce
18. (1) When any loan or advance has been granted for the
cultivation of crops on any land the expenses of reaping and
rendering merchantable such crops shall be borne by the person to
whom the loan or advance is made, and all such crops and produce
reaped or gathered from the land shall until such loan or advance
has been repaid, be sold, disposed of, or otherwise dealt with as
the Bank may so direct and, until so sold or disposed of shall be
held by the person obtaining the loan in trust for the Bank:
Provided that the power of the Bank to sell, to dispose of, or to

deal with such crops and produce as prescribed in this subsection
shall only be exercised by the Bank—
(i) where the person to whom the loan or advance was

made fails without reasonable cause to comply with
any of the provisions of this Act or commits a breach
of any of the terms or conditions under which the loan
or advance was granted; or
(ii) where the sale, disposal or dealing of the crops and

produce is in relation to the repayment of the loan or
advance.
(2) The Bank may enter into written agreement with any
person dealing in or processing any kind of agricultural produce
for the disposal or sale of such produce where loans or advances
have been made under the provisions of this Act to the owner of
such produce. The agreement shall provide for the sale without
Adam Haida & Co

http://peguam.org
undue delay of such produce and the immediate payment to the

Bank of the proceeds of such sale or such part thereof as the Bank
shall require and not exceeding the sum advanced or loaned
together with interest and reasonable charges thereupon; and the
proceeds of the disposal or sale less the sum due rightfully to the
Bank as aforesaid shall be credited to the account of the owner to
whom the loan or advance has been made.
Examination of application of loan, moneys and credit
19. (1) Where the Bank has made a loan or advance credit or has
guaranteed any loan of money under the provisions of this Act, the
Bank shall—
(a) provide such supervision as may be necessary to
ensure that the loan or advance is effectively utilized
for the purpose for which it was made; and
(b) require financial statements to be submitted by the
person, body or authority in receipt of the loan or
advance in such detail and at such intervals of time as
the Bank may specify and this requirement shall be
complied with by the recipient.
(2) The Bank may authorize in writing any of its officers or

any other person to make such examination, as the Bank may
direct and the person, body or authority in receipt of the loan or
advance shall produce to such officer or such other person all
such books, documents and other things and matters as may be
necessary for the purpose of the examination.
Sums improperly applied
20. If any sum whether constituting the whole loan, advance or

guarantee or any part thereof appears to the Bank not to have been
applied for the purpose for which it was granted or made, the Bank
may require the person, body or authority to whom the loan or
advance was made, within such time as may be specified in the
requirement, to—
(a) apply the sum for the said purpose; or
(b) repay the sum together with the interest, if any, due
thereon and other reasonable charges, if any, to the
Bank.
Adam Haida & Co

http://peguam.org
Cancellation or modification of approval of guarantee
21. The Bank may, at its discretion and without assigning any
reason therefor at any time after the approval of a loan or advance
or guarantee and before the actual repayment of the money or
completion of the guarantee, cancel or modify such approval and
withhold payment of the whole or any part of the money or refuse
to enter into such a guarantee.
Refusal to give sums not yet advanced
22. In any case where the Bank has approved the making or grant
of a loan by instalments, or has guaranteed such a loan, and any
part of such loan has not been advanced, then without prejudice to
any remedy, the Bank may refuse to advance the said part not yet
advanced if—
(a) any sum of money whether principal or interest due in
respect of any loan or advance made under this Act
remains unpaid;
(b) in the opinion of the Bank, any prior loan made under
this Act has not been applied for the purpose for which
it was made or granted or has not been expended with
due care and economy;
(c) the borrower has become insolvent or has been
sentenced to a term of imprisonment without the
option of the payment of a fine or convicted of any
offence involving fraud or dishonesty or has assigned
his estate for benefit of creditors;
(d) there has been a breach or non-observance of any
condition attached to the loan or advance; or
(e) in the opinion of the Bank, the sum already advanced
or loaned was not applied to the purpose for which it
was granted or made within a reasonable time.
PART V
GENERAL RESERVE FUND OF THE BANK
Maintenance of General Reserve Fund
23. At the end of each financial year the net profit of the Bank for
that year shall be determined after allowing for the expenses of
Adam Haida & Co

http://peguam.org
operation and after provision has been made for bad and doubtful
debts, depreciation in assets, contributions to staff and pension
funds and such other contingencies. The net profit for the year
shall be placed to the credit of the General Reserve Fund of the
Bank.
Exhibition of audited balance sheet
24. The Bank shall exhibit throughout the year in a conspicuous

position in every office and branch of the Bank a copy of its last
audited balance sheet, as soon as it is available, together with the
full and correct names of the directors of the Bank, and shall
publish its last audited balance sheet in at least one local daily
newspaper in the national language and at least one local daily
English newspaper; and within six months after the close of its
financial year forward to the Minister a copy of its last audited
balance sheet and profits and loss account.
P ART VI
ACCOUNTS AND AUDIT
Audit
25. The accounts of the Bank shall be audited by the Auditor

General or any other auditor appointed by the Board with the
approval of the Minister of Finance.
Preparation and publication of annual report and balance

sheet
26. (1) The Bank shall within three months from the close of its
financial year transmit to the Minister a copy of the Annual Report
of the Bank on the working of the Bank throughout the year and
such report shall be published by the Bank.
(2) The Minister shall cause a copy of every such report to be

laid before each House of Parliament.
Adam Haida & Co

http://peguam.org

P ART VII
OFFICERS AND EMPLOYEES OF THE BANK
Officers and employees
27. (1) The Bank may appoint such officers and employees as it
may consider necessary for the efficient conduct of the business
of the Bank.
(2) Officers and employees of the Bank shall hold office for
such period or periods, receive such salaries and allowances and
be subject to such other terms and conditions of service as may be
determined by the Board with the approval of the Minister and
subject to the concurrence of the Minister of Finance.
Borrowing from Bank by staff
28. (1) Subject to subsections (2) and (3) the Bank shall not lend
money to an officer or employee.
(2) The Bank may lend money to an officer or employee—

(a) for the purchase, erection, alteration, renovation or
enlargement of a house in which he resides or intends
to reside, under rules approved by the Board;
(b) to discharge a mortgage or encumbrance on such a
house; or
(c) for the purchase of a vehicle.
(3) Where the Board is satisfied that special or compassionate

circumstances exist or the purpose is appropriate, it may approve
a loan by the Bank to an officer or employee on such terms and
conditions as the Board thinks appropriate; and such loan shall
not exceed at any one time an amount equal to three months’ all-
in-salary of the officer or employee.
Restrictions on payments of loans and advances to staff
29. The Bank shall not grant an advance, loan or credit facility of
an unsecured nature to any director, any firm in which any of its
directors is interested as partner, manager or agent or director, any
Adam Haida & Co

http://peguam.org
individual or firm of whom or of which any of the Bank’s directors

is a guarantor, or any of the Bank’s officers or employees save as
provided in this Act.
Provident fund
30. The Board may with the approval of the Minister and subject
to the concurrence of the Minister of Finance, make rules for the
establishment and management of a contributory provident fund
for the officers and employees appointed under subsection 27(1)
or for the payment of pensions allowances or gratuities to the said
officers and employees on retirement or otherwise ceasing to hold
office as such officers and employees.
In this section, subsection 27(2), sections 28 and 29 the expression
“officer” includes the General Manager.
Officers on secondment or transfer from Federal or State

service
31. The appointments of officers or employees of the Bank who

have been seconded or transferred to the service of the Bank from,
or previously from, the service of the Federal or any State
Government or other public authority approved by the Board may,
subject to any Federal or State law, be made in accordance with
such arrangements as to pensions and allowance for previous
service as the Board may determine.
P ART VIII
PENALTIES AND PROSECUTION
Penalties
32. Any person shall be guilty of an offence and shall on

conviction be liable to a fine of two thousand ringgit or to
imprisonment for a term not exceeding one year or to both, if he—
(a) obtains a loan or advance or guarantee from the Bank
under or by means of any wilful misrepresentation;
(b) wilfully applies any loan or advance made to him by
the Bank to any purpose or purposes other than those
for which it was made; or
Adam Haida & Co

http://peguam.org
(c) having obtained the loan, advance or guarantee from

the Bank wilfully destroys any security given in
relation to such loan, advance or guarantee.
Fiat of Public Prosecutor
33. No prosecution for any offence arising out of the provisions

of this Act or in connection with any loan made hereunder shall be
instituted except with the consent in writing of the Public
Prosecutor.
Jurisdiction
34. Notwithstanding the provisions of any other written law a

Sessions Court shall have jurisdiction to try any offence against
this Act and to impose the full penalty prescribed therefor.
P ART IX
GENERAL
Penal Code
35. Any officer appointed under subsection 27(1) (as well as the
General Manager and any director of the Board) shall be deemed
to be a public servant within the meaning of the Penal Code [Act
574].
Preservation of secrecy
36. Except for the purpose of the proper performance of his

duties or the exercise of his functions or when lawfully required
to do so by any court or under any provisions of any law, no
director, General Manager, officer, or employee of the Bank shall
disclose to any person any information relating to the affairs of the
Bank or of any customer of the Bank which he has acquired in the
performance of his duties or the exercise of his functions.
Power to appoint attorney
37. The Bank may by instrument under its seal appoint a person
whether in Malaysia or any place outside Malaysia, to be its
Adam Haida & Co

http://peguam.org
attorney and such person so appointed may, subject to the

instrument, do any act or execute any power or function which he
is authorized by the instrument to do or execute.
Power to make regulations
38. The Board may, with the approval of the Minister, and in
respect of paragraph (a) subject to the concurrence of the Minister
of Finance, make regulations for all or any of the following
matters:
(a) the determination of salary scales and terms and
conditions of employment of the officers and
employees of the Bank, including the provision of
loans to such officers and employees; and
(b) any other matter required by this Act to be prescribed
and for the better carrying out of this Act.
Power to make disciplinary regulations
38A. (1) The Board may, with the approval of the Minister, make
such disciplinary regulations as it deems necessary or expedient to
provide for the discipline of the officers and employees of the
Bank.
(2) The disciplinary regulations made by the Board under this

section may include provisions for the interdiction with reduction
in salary or in other remuneration, or provisions for the
suspension without salary or other remuneration, of an officer or
employee of the Bank during the pendency of disciplinary
proceedings.
(3) The disciplinary regulations made under this section shall

create such disciplinary offences and provide for such
disciplinary punishments as the Board may deem appropriate, and
the punishments so provided may extend to dismissal or reduction
in rank.
(4) The disciplinary regulations made under this section shall,

in prescribing the procedure for disciplinary proceedings, provide
for an opportunity for the person against whom disciplinary
proceedings are taken to make representations against the
disciplinary charge laid against him before a decision is arrived at
by the Disciplinary Committee except in the following cases:
Adam Haida & Co

http://peguam.org
(a) where an officer or employee of the Bank is dismissed

or reduced in rank on the ground of conduct in respect
of which a criminal charge has been proved against
him;
(b) where the Board, on the recommendations of the
Minister charged with the responsibility for home
affairs, is satisfied that in the interest of the security of
Malaysia or any part thereof it is not expedient to
carry out the requirements of this subsection; or
(c) where there has been made against an officer or
employee of the bank any order of detention,
supervision, restricted residence, banishment or
deportation, or where there has been imposed on an
officer or employee of the Bank any form of
restriction or supervision, by bond or otherwise, under
any law relating to the security of Malaysia or any part
thereof, prevention of crime, preventive detention,
restricted residence, banishment, immigration, or
protection of women and girls.
(5) The disciplinary regulations made under this section shall

provide for the procedure for the hearing of an appeal against the
decision of the Disciplinary Committee.
(6) For the purpose of this section, “officer” includes the

General Manager.
Adam Haida & Co

http://peguam.org
30
LAWS OF MALAYSIA
Act 9
LIST OF AMENDMENTS
Amending law Short title In force from
Act 160 Malaysian Currency (Ringgit) Act 1975 29-08-1975
Act A758 Bank Pertanian Malaysia (Amendment) Act 01-08-1990

1990
Act A1048 Bank Pertanian Malaysia (Amendment) Act 01-09-1999

1999
Adam Haida & Co

http://peguam.org
31
LAWS OF MALAYSIA
Act 9
LIST OF SECTIONS AMENDED
Section Amending authority In force from
7 Act 160 29-08-1975
10A Act A758 01-08-1990
10 B Act A758 01-08-1990
Act A1048 01-09-1999
10 C Act A758 01-08-1990
10 D Act A1048 01-09-1999
10 E Act A1048 01-09-1999
38 Act A758 01-08-1990
38 A Act A758 01-08-1990
Act A1048 01-09-1999
Adam Haida & Co

http://peguam.org

Bank Pertanian Malaysia Act 1969 (Act 9)

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bank Pertanian Malaysia Act 1969 (Act 9)

Uploaded by

Copyright:

Available Formats

009e.

fm Page 1 Monday, March 27, 2006 11:18 AM

BANK PERTANIAN MALAYSIA

Adam Haida & Co

BANK PERTANIAN MALAYSIA ACT 1969

Date of Royal Assent … … … … … 22 April 1969

Date of publication in the Gazette … … … 1 May 1969

PREPARED FOR PUBLICATION BY

Adam Haida & Co

Bank Pertanian Malaysia 3

BANK PERTANIAN MALAYSIA ACT 1969

Adam Haida & Co

4 Laws of Malaysia ACT 9

Adam Haida & Co

Bank Pertanian Malaysia 5

Adam Haida & Co

Adam Haida & Co

Bank Pertanian Malaysia 7

BANK PERTANIAN MALAYSIA ACT 1969

An Act to incorporate the Bank Pertanian Malaysia to organize,

[Throughout Malaysia—1 August 1969, P.U.(B)187/1969]

BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan

1. This Act may be cited as the Bank Pertanian Malaysia Act

2. This Act shall apply throughout Malaysia.

3. In this Act unless the context otherwise requires—

Adam Haida & Co

8 Laws of Malaysia ACT 9

“Bank” means Bank Pertanian Malaysia;

Establishment of the Bank

4. A body corporate by the name of “Bank Pertanian Malaysia”

Office of the Bank

Adam Haida & Co

Bank Pertanian Malaysia 9

6. The objects of the Bank shall be—

7. (1) The authorized capital of the Bank shall be fifty million

(2) The paid up portion of the authorized capital may be

Provided that the payment of such increase in capital may be

8. (1) There shall be a Board of Directors constituted under

Adam Haida & Co

10 Laws of Malaysia ACT 9

(2) The Board of Directors shall consist of a Chairman

Provided that at least three of the directors appointed by

(3) The directors appointed under subsection (2) shall be

(4) Where a director appointed is a public officer—

(a) the prohibition mentioned in subsection (3) shall not

(b) there shall be appointed an alternate director in addition

Terms of appointment of Chairman and directors

9. (1) The Chairman shall be appointed for a term not

(2) Subject to subsection (1), a director shall hold office for a

(4) During the temporary incapacity from illness or during the

(5) The Yang di-Pertuan Agong or the Minister, may terminate

Adam Haida & Co

Bank Pertanian Malaysia 11

(a) is guilty of serious misconduct in relation to his office;

(6) No person shall be appointed or shall remain as Chairman

Appointment and duties of General Manager

(2) The General Manager shall be answerable to the Board for

(3) The General Manager shall devote the whole of his

Provided that he may if so appointed with the approval of the

(a) act as a member of any committee or commission

Adam Haida & Co

12 Laws of Malaysia ACT 9

affecting agriculture and agricultural production,

Appointment of committees and subcommittees